Coke sees robust earnings growth, wants more focus on key markets

<p>The Coca-Cola Co. is well-positioned for continued earnings growth in 2004, but must do a better job on its initiatives in some key markets around the world, including Brazil and North America, chief executive Doug Daft said Friday.</p><p>In a meeting with investors and analysts in New York, Daft said the worlds largest beverage maker expects 11 percent to 12 percent earnings growth over the long-term, but is not where it wants to be as far as operating income levels and brand performance in some markets.</p><p>In some markets, we have been too volume-only focused and our package offerings are too limited, Daft said.</p><p>Citing past strategies in Brazil and North America, Daft said the steps are being taken now to improve local execution. He said the Atlanta-based company has already been able to achieve growth in Mexico, Spain and Greece.</p><p>Daft would not give quarterly earnings guidance, keeping with company policy, but he said Coke overall is poised for a strong year in 2004. He said the company will focus on profitable volume growth, aggressive cost management and leveraging an efficient capital structure.</p><p>My message is simply that the Coca-Cola Co. and our bottling partners around the world are extremely well-positioned to capture the potential of this industry, Daft said.</p><p>Steve Heyer, Cokes president and chief operating officer, said the company has faced challenges in recent years in growing its Sprite and Fanta brands in North America, and volume growth in the region for Fanta, in particular, is not where the company wants it to be. He said Fantas performance has been strong in Europe and Asia.</p><p>When it released third-quarter earnings in October, Coke said strong international growth offset flat demand for Coca-Cola products at home as the company reported a 12 percent increase in earnings. The international growth, led by China and several European countries, was welcome news considering Coke only posted 1 percent unit case sales growth in North America.</p><p>Heyer reiterated Friday that international growth will be key to Cokes future.</p><p>The way to get from here to there is with mix, and the way to get mix is to have choice, Heyer said.</p><p>Heyer said the company wants to focus on tapping into areas where it has the best chance of spreading the impact of its brand name, such as the entertainment and sports fields and national fast-food and restaurant chains. The company releases fourth-quarter and year-end earnings on Feb. 11.</p><p>We have the ability to link people to what theyre passionate about, Heyer said.</p><p>In trading on the New York Stock Exchange, Coca-Cola shares rose 98 cents to close at $49.37.</p><p>___</p><p>On the Net:</p><p>HASH(0x286495c)</p>